Industrial IoT Connections Set to Surpass Consumer Devices by 2025, GSMA Forecasts

Industrial IoT connections are projected to eclipse consumer connections by 2025, a new GSMA Intelligence report reveals. While consumer devices currently dominate the global IoT landscape, the trend is poised to reverse, according to Sylwia Kechiche, principal analyst for IoT at GSMA Intelligence—the research arm of the global mobile‑operator trade group.

In 2025, the industrial segment—encompassing enterprise‑level IoT deployments and vertical‑specific applications—will account for more than half of all connections, reaching 13.8 billion. The consumer segment is expected to hit 11.4 billion connections, underscoring a significant shift in market dynamics.

GSMA advises operators to pivot from a revenue model focused primarily on device connectivity toward a strategy that targets specific industrial verticals with tailored IoT solutions. The report notes that connectivity revenue will represent a mere 5 % of total IoT revenue by 2025, a figure that falls short of the robust growth seen in other IoT segments such as platforms—currently the largest revenue driver—and professional services.

“There’s no single recipe for operator success; it hinges on the enterprise strategy and the depth of engagement in IoT,” Kechiche explains. “Within industrial IoT, we’re seeing a clear move toward plug‑and‑play, easier‑to‑deploy solutions, with operators adopting a marketplace‑style model.”

For example, Sprint’s IoT Factory—a digital marketplace that offers ready‑to‑use IoT software—allows SMBs and enterprises to acquire solutions within two days, without requiring IT expertise. The store features applications ranging from refrigeration temperature monitoring for grocery stores to energy‑management tools, and even provides access to developers for custom builds.

“It’s about collaboration,” Kechiche says. “We invite partners to bring problems, not just devices.”

As connectivity revenue contracts, the platforms, applications and services segment is set to capture a dominant 68 % of total IoT revenue by 2025, encompassing platforms, application services, cloud, data analytics and security. IoT professional services—including system integration, managed services and consulting—are projected to command 27 % of total IoT revenue in the same year.